LAHORE - The Federation of Pakistan Chambers of Commerce and Industry’s Businessmen Panel (BMP) chairman has warned that continued borrowing from the IMF and other multilateral sources is posing serious economic threat, as Pakistan has taken foreign loans of $9.43 billion in just first half of this fiscal year, suggesting the economic team to convince the lender for softening its conditions so that government could pursue its pro-growth strategies through some incentives for the industry.
BMP Chairman Mian Anjum Nisar emphasized the need for exploring investment resources from the private sector as well as non-traditional regional partners through investment friendly policies in the country.
He said that the government is taking foreign loans to build the country’s foreign exchange reserves, which are declining due to repayment of previous loans and financing of current account deficit. The State Bank’s held foreign exchange reserves have declined by slightly above $3 billion since August 2021. In just one week time, reserves have declined by $562 million mainly on account of international debt servicing. Reserves held by the SBP have decreased to $17 billion, which would further come under pressure in the next six months as Pakistan has to repay $8.7 billion in the second half of FY 2022.
